Air India is lobbying the Indian government to persuade China to allow its flights through a restricted military airspace zone in Xinjiang, a move aimed at shortening international routes after Pakistan closed its airspace to Indian carriers, according to a company document reviewed by Reuters. The unusual request comes just weeks after direct India-China flights resumed following a five-year hiatus prompted by a Himalayan border clash.
The airline, owned by Tata Group and Singapore Airlines, has been struggling to rebuild its international reputation after a June crash of a London-bound Boeing 787 Dreamliner in Gujarat, which killed 260 people and temporarily grounded flights for safety checks. The closure of Pakistani airspace since April has added further pressure, increasing fuel costs by as much as 29% and extending journey times by up to three hours on certain long-haul routes, the document indicated.
Air India has asked the Indian government to formally request China to allow alternative routing and emergency access to airports in Hotan, Kashgar, and Urumqi, which would help it reach the U.S., Canada, and Europe more efficiently. The document described the proposed Hotan route as a “strategic option” for alleviating operational and financial strain. The airline estimated that the Pakistan airspace closure alone could reduce profit before tax by $455 million annually, a significant figure considering its fiscal 2024-25 loss of $439 million.
The Chinese foreign ministry stated it was unaware of the request and referred Reuters to the “relevant authorities.” Air India, along with civil aviation authorities in India, China, and Pakistan, did not respond to Reuters’ inquiries. Analysts note that the requested airspace is among the world’s highest, often avoided due to potential safety risks and its location within the People’s Liberation Army’s Western Theater Command, which controls both military and some civilian air traffic.
With Pakistan’s airspace closed, Air India has already suspended the Delhi-Washington route and warned that direct Mumbai- and Bengaluru-San Francisco flights are becoming unviable due to longer travel times and technical stops. Passengers are reportedly shifting to foreign carriers that still benefit from overflight rights, increasing the urgency for Air India to secure alternative routes through China. The airline estimates that the Hotan corridor could reduce extra fuel consumption, cut flight times, restore passenger and cargo capacity trimmed by up to 15%, and decrease losses by an estimated $1.13 million per week.
Beyond operational issues, Air India is also seeking temporary subsidies until Pakistani airspace reopens and assistance resolving legacy tax liabilities totaling $725 million, which have created additional cash flow pressures despite prior government assurances during the airline’s privatization in 2022. Confidential government notices seen by Reuters revealed that coercive measures, including asset freezes, have been threatened to recover certain dues.
